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FG set to inject N250billion into FMBN

By on February 6, 2015

The Managing Director of Federal Mortgage Bank of Nigeria (FMBN), Mr. Gimba Ya’ Kumo, has said the federal  government has concluded all necessary arrangements to recapitalise the apex mortgage bank to the tune of N250 billion.

While the bank generates N2.4 billion monthly from over four million contributors to the National Housing Fund (NHF), its low capital base THISDAY learnt is a clog to its optimal performance.

Fielding questions from journalists at a dinner organised by the bank for its outgoing executive directors on Monday night, he said though time was very essential in this regard, government has assured that the bank will soon be recapitalised with N250 billion.

While government is concentrating on settling other issues, Kumo said: “We have been promised that as soon as possible that would be concluded. What I have requested for is N250 billion even though we know that there are a lot of competing needs of government like security education roads. I’m confident that very soon the bank will be recapitalised.”

He however said the bank has made progress in reabsorbing the six states that have not been contributors to the NHF scheme.

He said: “As at today we have only six states that are not in NHF, particularly in Lagos state, but the workers there have formed cooperative societies and they are therefore contributing indirectly to the fund through their cooperatives.

“The other states we talking to them and as soon as possible we will see what we can put on the ground first and of course you know workers are more interested in seeing the houses and the mortgages this is what we are trying to do in all the 36 states to be able to build houses and at the end of the day we will be able to convince them and hopefully in the next 10 months.”

The FMBN boss said with the effective implementation of all the Memorandum of Understanding (MoU) signed, the bank would deliver over four million mortgages by 2019. According to him, government is making efforts to reduce the cost of housing through the introduction of new building technology and reduction in building materials.
This, he stated would translate to affordable houses for Nigerians.

“That the bank is working together with the various ministries of housing and private organisations  to see that discount on some of the inputs that make up the raw materials components like cement  becomes  a reality. ”

As part of cost reduction of building materials, he said arrangement had been concluded with some universities in Asia on the production of blocks with five per cent cement content.

“We just came back from Thailand with the officials of the Federal Capital Development Authority (FCDA), and Ministry of Housing Lands and Urban Development, where research has been done on Nigerian soil and it was discovered that our sand is 17 times better with the capacity to use 5 percent cement quantity to produce blocks”, he said.